CAB urges withdrawal of VAT, supplementary duty hike amid rising inflation
They expressed concern that traders have already started stockpiling with Ramadan approaching in March and raising prices for essentials such as oil, lentils, sugar, chickpeas, fish, meat, and spices.
Highlights:
- CAB urges to reverse VAT and duty hike on 100+ products
- Stockpiling ahead of Ramadan may drive up essential prices
- VAT hike risks further inflation and financial strain
- CAB calls for expanded VAT net, direct tax focus, and transparency
The Consumers Association of Bangladesh (CAB) Chattogram Division has called for the immediate withdrawal of an ordinance issued by the National Board of Revenue (NBR) to increase VAT and supplementary duties on over 100 products and services.
The ordinance was issued on the advice of the International Monetary Fund (IMF). It imposed higher VAT and supplementary duties on items such as mobile phone and internet services, medicines, LPG, sweets, biscuits, pickles, tomato sauce, fruit juice, fresh fruits, soap, detergents, kitchen towels, toilet tissues, mattresses, ferromanganese (raw material for rod production), varnish, and more.
Keep updated, follow The Business Standard's Google news channel
In a statement issued today (12 January), CAB leaders warned that this decision to increase VAT and supplementary duties could exacerbate inflation, making life even harder for ordinary people.
The statement was signed by CAB's central committee Vice President SM Nazer Hossain, Chattogram divisional General Secretary Kazi Iqbal Bahar Saberi, among others.
They also expressed concern that traders have already started stockpiling with Ramadan approaching in March and raising prices for essentials such as oil, lentils, sugar, chickpeas, fish, meat, and spices.
The statement further noted that the VAT and supplementary duty hike could serve as an excuse for traders to ignite another round of price hikes, creating chaos in the essential goods market.
Although the government has undertaken various initiatives to control inflation, the public has yet to reap its benefits, the CAB leaders said in the statement.
They called on the government to expand the existing VAT net, streamline tax collection, prevent tax evasion, and ensure transparency and accountability within the NBR.
They emphasised the need to focus on increasing direct taxes instead of indirect taxes, which disproportionately impact low-income groups.
